ISLAMABAD: The Cabinet Committee on Energy (CCoE) headed by caretaker Minister for Power and Petroleum Muhammad Ali scheduled to meet on Friday (today) will authorise Power Division to negotiate with baggasse power plants to resolve disputes, official sources told Business Recorder.
Sharing the details, sources said, Power Division moved a summary titled “Implementation of Master Agreements and PPA amendments with Wind Power Producers (WPPs)” on May 25, 2023.
CCoE considered the summary and directed Power Division to chalk out a new strategy to continue engaging 14 Wind Power Producers (WPPs) to achieve objective of savings for consumers and cost reduction. In order to implement above referred decision of the Cabinet Committee on Energy (CCoE) Power Division notified following committee to engage with 14 WPPs: (i) Managing Director, PPIB (Member/ Convener); (ii) Chief Executive Officer, CPPA-G (Member); (iii) Joint Secretary (PF), Power Division; (iv) Joint Secretary, Law & Justice Division; and (v) representative of Finance Division(Member).
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The sources said, M/s Chiniot Power Limited, an IPP based on bagasse did not agree during earlier negotiations with IPPs to convert its MoU into binding agreement during 2020-21. M/s Chiniot Power Limited approached CPPA and Power Division on January 1, 2024 and indicated its intention to renegotiate and initiate meaningful discussions with CPPA-G to resolve its disputes.
Earlier, Memoranda of Understanding were signed with 47 IPPs as a consequence of negotiations during 2020.
After series of negotiations, the then Implementation Committee succeeded to convert 46 MoUs into initialled agreements as a report for approval by CCoE.
Out of these 46 IPPs, binding agreements with 32 IPPs (20 Thermal IPP, 7 Bagasse IPPs, 3 Wind Power Producers (WPPs) and 2 Solar IPPS were executed and payments were made after due approval by CCoE and ECC.
According to the sources, CCoE authorised Power Division to devise a new strategy to continue engaging with 14 wind power producers. Power Division argues that the committee constituted for engaging with WPPs can also engage with M/s Chiniot Power Limited to evaluate the proposal by the company to resolve the disputes and place its recommendations for consideration of the CCoE.
The Committee may recommend the possible options while keeping the proposals non-discriminatory for other bagasse based IPPs after due negotiations.
Power Division has proposed to the Committee to authorise the request of M/s Chiniot and to enhance the scope of the existing Committee to engage with bagasse based IPPs to resolve the disputes and place its recommendations for the consideration of the CCOE in this regard.
Copyright Business Recorder, 2024
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